China’s Jiangsu Hengrui Pharmaceuticals (SHA: 600276) has announced a licensing agreement with US-based Treeline Biosciences, Inc. The deal grants Treeline exclusive development, manufacturing, and commercialization rights to the pipeline candidate SHR2554 in markets outside of the Greater China area. This strategic partnership aims to expand the global reach of SHR2554, a promising treatment for recurrent/refractory mature lymphocytic tumors.
Financial Terms of the Agreement
Under the terms of the agreement, Treeline will pay Hengrui an upfront payment of USD 11 million, development and regulatory milestones of USD 45 million, and a further potential USD 650 million in sales-based milestones. Additionally, Treeline will pay 10%-12.5% royalties on net sales. This financial structure provides significant potential upside for both companies while accelerating the development and commercialization of SHR2554.
SHR2554: EZH2 Inhibitor and Clinical Development
SHR2554 is an enhancer of zeste homolog 2 (EZH2) inhibitor discovered in-house by Hengrui. It was first approved for a Phase I clinical trial in China in May 2018, where it began assessment as a treatment for recurrent/refractory mature lymphocytic tumors. The molecule was awarded breakthrough therapy designation (BTD) status for use in recurrent or refractory peripheral T-cell lymphoma in China in January 2023. This designation highlights the potential of SHR2554 to address a significant unmet medical need.
Global Market and Competitive Landscape
Globally, Epizyme’s Tazverik (tazemetostat) is the only commercially available EZH2 inhibitor, approved in the US to treat metastatic or locally advanced epithelioid sarcoma (ES) in adults and adolescents over 16 years old. Other similar products under development include Pfizer’s PF-06821497, Daiichi Sankyo’s valemetostat, and Constellation’s CPI-0209. The licensing of SHR2554 to Treeline positions Hengrui to compete effectively in the global market for EZH2 inhibitors.-Fineline Info & Tech
